II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 that he holds. In this case the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires Balance Sheet on Monday M2 MB Assets Liabilities $1000 $1000 D $800 R reserve-deposit ratio are 0.25. Show the bank's balance sheet, the monetary base, and the money supply for Tuesday and Wednesday. MB Balance Sheet on Tuesday Assets R L RL Assets D Balance Sheet on Wednesday 65 $800 D Liabilities Liabilities M2 M2 MB

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.